Support for used EV market tops fleet industry wish list ahead of Budget, says AFP

The Association of Fleet Professionals (AFP) has called for urgent support for the second-hand electric vehicle (EV) market, naming it the number one aspiration ahead of November’s Budget.

“While the scheme has not been perfect, it appears to be helping make new electric cars more accessible through both direct grants and widespread, substantial discounting being prompted by increased competition,” Hollick explained. “Really, we’d like to see a corresponding initiative for the used sector. While values for second hand EVs have stabilised and the era of large month-on-month drops appears to thankfully be over, consumer interest is still variable and residual values remain simply too low.”

He suggested measures such as direct grants or interest-free loans could encourage buyers and provide fleets with greater certainty.

Beyond used EVs, the AFP is also urging the Chancellor to consider a package of measures to support electrification:

• Scrapping Vehicle Excise Duty (VED): The April increases for EVs have added significantly to running costs, Hollick said, creating a “disincentive,” while the introduction of VED for electric vans has been “counterproductive” for a market still developing.
• Boosting charging infrastructure: The AFP is calling for wider adoption of kerbside charging solutions such as cable gullies, alongside more “destination charging” at hotels and other facilities. It also wants the reintroduction of business charging infrastructure grants, noting that many fleets were unable to access earlier schemes due to unrealistic deadlines.

Hollick also raised the ongoing issue of potholes, which continue to cause damage to company cars and vans despite the £500 million pledged in the last Budget. “Identifying where this money is being spent is difficult because the condition of our roads doesn’t appear to be noticeably improving. We’d like to see more visible progress,” he said.

The AFP’s wider 2024 Tax and Regulation Manifesto also contains recommendations for the Chancellor. Hollick noted that while the government has already acted on some proposals, such as introducing split-level Advisory Electricity Rates (AERs), many issues require more time and investment to resolve.

“They’ve now been in power for just over a year and we do believe this is a government that often listens to fleets and the wider motor industry,” Hollick said. “However, there is a shortage of money to spend and many of the issues that we’d like to see resolved require both funding and time.”